The government says its largest spending increase in the 2012 budget is on health.
It will spend $435 million more in the 2012/13 year - taking the annual health budget up to $14.12 billion, Health Minister Tony Ryall announced on Thursday.
An extra $1.5b will be spent over the next four years.
The money has come from savings in the previous year and from savings outside the health sector - $358m is coming in from other sectors.
The health sector will account for just over 19 per cent of the government's total spend of $73.7b in the coming financial year.
Despite tight financial constraints, [the government] is maintaining its commitment to protecting and growing our public health services," Mr Ryall said.
In pre-budget announcements the government has already said prescription charges will rise from $3 to $5, capped at 20 items - estimated to raise $40m a year.
Mr Ryall said an extra $133m would be spent on improving services for the disabled over the next four years.
Also, $33m will be spent over four years on improving cancer treatment - including funding for dedicated cancer nurses.
Some cancer patients can be seen by up to 28 doctors and nurses, and the new cancer nurses will be a single point of contact.
The aim is to reduce the waiting time for radiation treatment from 15 weeks to four weeks.
It was also announced $68m would be spent to maintain high levels of elective surgery and $40m on extra dementia services.
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